Vinyl inflation pays record return

Copies of the Sex Pistols' withdrawn God Save The Queen single on A and M Records are now worth 8,000 pounds

Music fans could see record returns as "vinyl inflation" sends the price of some releases rocketing.

A list of 51 records has been selected by a panel of experts as potential good investments and top of the list is the ultra-rare withdrawn Sex Pistols single God Save The Queen on A&M Records.

The label dumped the band before it was released and destroyed most of the copies, making it worth £8,000 now on the rare occasions a copy turns up.

Some of the other records on the list are more affordable, with mint condition first pressings of popular albums such as David Bowie's The Rise And Fall Of Ziggy Stardust And The Spiders From Mars worth around £40 and likely to increase in value.

Ian McCann, editor of Record Collector magazine, which drew up the list, said: "There is something of an investment market in mint-condition copies of iconic albums. The problem is people love them and play them to death, making it increasingly rare to find them in mint condition."

A more valuable example is the Rolling Stones self-titled UK debut album with mint copies going for £1,000.

More recent arrivals on the music scene can also be valuable with the critically-acclaimed nu-folkie Laura Marling's 2007 debut EP going for £40 already.

Personal finance expert Simon Read told Record Collector: "Vinyl inflation has rocketed as collectors snap up elusive treasures. Even big-selling records you couldn't have moved on for 50p a few years ago are fetching pounds as a generation finds the cash and the means to buy back their memories.

"However, records are the same as any other investment in that they are only worth what you can get for them. For that reason, the timing of the sale is crucial. Are vinyl prices set to continue rising? In general, yes.

"But as specific bands and artists come in and out of fashion, if you really want to use your collection as a pension, you'll need to manage it properly. To a degree that will mean not only buying the music that you love, but investing in records that will remain highly prized."